X0202 4 2006-05-12 0000003952 ALLIED DEFENSE GROUP INC ADG 0001295984 Pirate Capital LLC 200 CONNECTICUT AVENUE NORWALK CT 06854 0 0 1 0 0001333606 Hudson Thomas R Jr 200 CONNECTICUT AVENUE NORWALK CT 06854 0 0 1 0 common stock 2006-05-12 2006-05-12 4 P 0 15000 33.00 A 827400 I See footnote 1 and 2 The securities beneficially owned by the Reporting Persons are held directly by Jolly Roger Fund LP, a limited partnership for which Pirate Capital LLC ("Pirate") serves as general partner, and Jolly Roger Offshore Fund LTD, an investment fund for which Pirate serves as investment advisor (collectively, the "Funds"). Pirate is deemed to be the indirect beneficial owner of the securities reported herein by reason of its position as general partner or investment advisor, as applicable, of the Funds, and its pecuniary interest in such shares is a fractional interest in such amount. Thomas R. Hudson Jr., as the sole managing member of Pirate, is also deemed to be the indirect beneficial owner of such securities. The Reporting Persons disclaim beneficial ownership of any and all such securities in excess of their actual pecuniary interest. Pirate and The Allied Defense Group, Inc. ("ADG") have entered into an agreement pursuant to which, among other things, the ADG board of directors will be increased from seven to nine members and Zachary R. George, who serves as a Director and Senior Investment Analyst at Pirate, will be a nominee for director at ADG's 2006 annual meeting of shareholders. /s/ Pirate Capital LLC, by Thomas R. Hudson Jr. its Portfolio Manager 2006-05-12 /s/ Thomas R. Hudson Jr. 2006-05-12